Renters’ Rights Bill

Debate between Baroness Grender and Lord Jamieson

Monday 12th May 2025 Lords Chamber

[Baroness Grender (LD)]

My Lords, talk about save the Best until last—well, until the penultimate. The breadth, depth, knowledge, understanding and experience of the names backing these amendments is fascinating and extraordinary. I thank all noble Lords. I speak on behalf of my noble friend Lady Thornhill who also put her name to both amendments. She signed these amendments and we backed them because it is so astonishing that property agents still, today, have none of these qualifications and that anyone can be set up and become a lettings agency. It is staggering given the amount of expertise that they need in order to advise landlords and tenants on these significant complex legal issues in exchange for the not insignificant amounts of money they get for doing that very job.

Propertymark and others are pressing for this. They know that there are people out there who are not doing a good job, as the noble Lord, Lord Truscott, described, and that they are letting the side down and giving good lettings agents a terrible reputation. It is in everyone’s interest that this aspect of the private rented sector is regulated, precisely because the UK property market is very heavily regulated already, with strict laws governing tenants’ rights and landlords’ obligations across many different Acts. Knowledge, understanding and training around that is absolutely critical.

Qualified property agents should possess the knowledge and expertise to navigate this minefield. Legal compliance and risk management are essential. The list of what they have to do already is long and complex and the Bill will add to it, which is why a transition timeline is essential, with thorough, clear guidance as to what is expected, when and by whom. Landlords are rightly worried about this, and I hope that the Minister can reassure the sector on that particular issue of timeline.

It is worth stressing that without proper qualifications, agents risk costly legal battles, fines and damage to their own professional reputation. We have heard that there are already qualifications out there. The sector is keen to get going and roll them out, but they need that push; that degree of compulsion. Amendments 203 and 204 would provide that. Qualifications demonstrate that the agent is knowledgeable about market trends, property evaluations, but also, importantly, ethical practices and transparency itself. All these things are needed. This would create a virtuous circle, boost tenants’ confidence and make landlords more likely to trust their investments with a qualified agent who would also be able to conduct property inspections, manage maintenance, repairs and rent collection and handle financial management. Surely this has to be done with real professional skill, reducing the risk of disputes and maintaining property value. Those agents who get ahead of the curve and get qualified now will become the best. They will stand out from the crowd in a competitive marketplace.

If the Bill is about raising the standard in the private rented sector, rooting out the bad guys and making a once-in-a-generation shift in private renting, this is such an important part of the equation. The Government must grasp it, grasp it soon and get on with it. At the end of the day, it is not just about bricks and mortar, but people’s homes and livelihoods. I ask the Minister: if not this Bill, where and when?

[Lord Jamieson (Con)]

My Lords, I thank the noble Lord, Lord Best, for bringing Amendments 203 and 204 before your Lordships’ House today. They propose the insertion of new clauses after Clause 63 and rightly focus on training property agents and the enforcement of agent qualifications. I also thank the noble Lord, Lord Young, who raised the important aspect of parity with the social rented sector, and the noble Baroness, Lady Hayter of Kentish Town, who said that, actually, this is very complex, that people need to understand it and that inadvertent mistakes and omissions are frequently made. The noble Baroness, Lady Warwick of Undercliffe, gave us some statistics—I could not write them down quickly enough, but I am sure I will get hold of them sooner or later. The noble Baroness, Lady Coffey, made a good point, which I will come back to, about proportionality and the risk of overregulation—something that noble Lords may have heard once or twice from this side of the Chamber. I also thank the noble Lord, Lord Truscott, and the noble Baroness, Lady Grender, whose comments I will also come back to.

Your Lordships’ House is correct to consider the value of proper training and qualifications, and the benefits this knowledge can bring to the property market. I shall focus my contribution on the impact that training can have in reducing the risk of regulatory breaches, thereby benefiting tenants. Not only will well-trained agents develop a broader and more cohesive understanding of the law but their ignorance, and the potential for breaches arising from a simple lack of understanding, will be greatly diminished. With this, significant benefits will also be felt by local authorities, as fewer cases of regulatory breaches will be brought to their attention for resolution.

Such a reduction in caseload is particularly important at a time when local authorities are tasked with implementing the Secretary of State’s reorganisation plans as outlined in the devolution White Paper. As your Lordships’ House will be well aware, local authorities are currently operating under immense pressure—facing financial constraints, staffing shortages and increasing responsibilities. It is not just a case of money; I know from my experience with local authorities and their housing teams that it is a lack of enough trained people. We need to seek to minimise the pressure that we put on them.

We must explore proactive measures such as ensuring that property agents are properly trained and qualified from the outset. By doing so, we not only improve standards across the sector but allow local authorities to focus their limited resources on strategic priorities rather than enforcement. However, as the noble Baroness, Lady Coffey, said, there is an issue of proportionality. We must ensure that any powers we pass to the Secretary of State are proportionate and can be implemented. While ministerial oversight is, of course, necessary in certain respects, we must be cautious about top-down regulation of key aspects of training and enforcement.

If we are truly committed to getting this right, we must resist the temptation to defer action or consign this matter to the “deal with it later” category. This argument has been, and will no doubt continue to be, clearly articulated across this House. Not placing provisions in the Bill is not only inadequate but raises more questions than it answers. We must understand the Minister’s intentions fully before we consider granting such significant powers to the Secretary of State. Nevertheless, the intention behind these amendments is well placed. Educating letting agents is vital, as they occupy a central role in the rental housing market and have a direct impact on whether tenants are treated both fairly and lawfully.

Exploring ways to enhance tenant protection without compromising housing supply should be at the front and centre of the Government’s thinking. It is vital that we establish clear, accessible means to ensure that landlords understand their rights and responsibilities, and the regulatory framework in which they operate. Property agents must be at the heart of this ambition.

Renters’ Rights Bill

Debate between Baroness Grender and Lord Jamieson

Tuesday 22nd April 2025 Lords Chamber

[Baroness Grender (LD)]

My Lords, this is my first speech today, so I will take the opportunity to thank the Minister and her team for all the discussions so far. I support the fundamental principles underpinning this legislation, in particular the long-overdue abolition of Section 21 no-fault evictions—a change that, as we have heard, cannot come soon enough for countless renters across the country.

However, as we work to create a much fairer and more secure private rented sector, we on these Benches are also hugely aware of the pressing need to increase the supply of high-quality rental homes. For that reason, we have tabled Amendment 15, which aims to provide a very specific and targeted temporary exemption to the abolition of ASTs—assured shorthold tenancies. Specifically, the provision would allow assured shorthold tenancies for a period of six months for premises whose current tenants are the first tenants since the construction of the premises. This is a carefully considered proposal, designed to support the laudable aims of the Bill by incentivising the creation of much-needed new rental stock.

My honourable friend in the House of Commons, Gideon Amos, and noble Lords on these Benches have consistently championed the cause of increasing housing supply, particularly through new innovative models such as build-to-rent accommodation. This highlights the urgent need to restore hope to millions aspiring to a decent home after decades of decline in social housing provision. Indeed, ours was the only manifesto with a direct target of 150,000 new social homes to rent—a vital underpinning building block to change the lack of balance in tenures to match and accommodate the desperate need that has reached a crisis level today.

My colleague tabled an amendment in the House of Commons that would have specifically incentivised more build-to-rent accommodation by offering a degree of initial security for developers. Although that original amendment proposed a longer initial term of about two years, the underlying principle remains the same. New developments, particularly in the build-to-rent sector, require a degree of certainty.

We have heard directly from the British Property Federation, which is the representative body for the build-to-rent sector. It has expressed its support for measures that increase the certainty of rental income for institutional investors developing these new homes. It has engaged with us and our colleagues in the Commons on a similar amendment and explicitly stated support for its general thrust. The British Property Federation supports the new supply of rental housing and has said that six months would be an adequate period to incentivise investment in new construction and build to rent. I thank the British Property Federation for its engagement and advice, specifically on this issue.

In the previous group, I explained why I think ASTs are not very secure. This proposed six-month assured shorthold is a one-off exemption that would genuinely offer a limited period of certainty for developers to encourage them to build. That is what we are aiming for. It is a narrowly defined exemption that would apply only to properties being let for the very first time after their construction. It would not affect existing tenancies or undermine the core principles of abolishing no-fault evictions for the vast majority of renters, which we strongly support.

Indeed, by encouraging the creation of new rental homes, we believe the amendment would be a small, modest but useful way of ultimately expanding the options available to renters and contributing to a better balance in the market. The proposal is so modest, unlike other amendments that we have heard today, with build to rent currently estimated to be around 0.1% of the overall housing stock. We believe it would have minimal impact on the much broader move towards periodic tenancies. It may be appropriate at this point to say that we would not support removing Clause 2 from the Bill as we agree with its broad principles, but this approach would recognise the practical realities of bringing new developments to market.

In conclusion, while we rightly focus on enhancing security and rights for existing renters, we must not lose sight of the fundamental need to find ways to increase the supply of decent homes. That is what we are attempting to do with this amendment. We believe that it will act as a catalyst for increased investment in new rental properties, ultimately benefiting renters by providing more choice and contributing to a more sustainable and responsive housing market.

I urge the Minister and noble Lords to give this proposal careful consideration. We will be more than happy to do further work if it is not exactly to order. We believe that there is an opportunity to try to at least encourage a bit more supply in the market sector, even if we do not entirely agree with the suggestions that the whole market will suddenly disappear in the wake of this Bill. With that, I beg to move.

[Lord Jamieson (Con)]

My Lords, I am grateful to the noble Baroness, Lady Grender, for introducing an amendment that would allow short-term tenancies to continue for six months after a premises is constructed. The noble Baroness has highlighted the fundamental importance of increasing the supply of rented properties. Her case is compelling. This amendment would allow support for newly constructed properties by providing greater certainty for investors in that property. Additionally, it is often true that new properties have periods of vacancy while long-term lets are secured. We must consider, evaluate and listen to all solutions to ensure that liveable accommodation is not left empty and to help develop a stable and thriving community. I am thankful that the noble Baroness has brought this discussion to the attention of the Committee.

However, I wish to probe more widely why the Government are seeking to abolish assured shorthold tenancies, and therefore will speak to my opposition to Clause 2 standing part of the Bill. The short-term rental market supports job mobility, especially industries which require relocation or even temporary positions. Enabling the mobility of working-age adults to reach the depth and breadth of the United Kingdom is vital for economic growth. The modern workforce requires flexibility—the ability to move and adapt, and to pursue opportunities wherever they may arise. By discouraging the ebb and flow of economic activity, we discourage the labour market flexibility required for an expanding economy. Jobs must follow demand, not be restrained by the state removing the option of a short-term tenancy.

While the economic argument is compelling, so is the practical one. For individuals undertaking a home renovation or experiencing family breakdown, short tenancies provide not only a practical solution but an important reprieve, allowing people to escape the chaos of building works or to rebuild a new life without haste. Have the Government considered the benefits of shorthold tenancies for the tenant? Has the Minister considered both the economic and practical benefits of their existence?

With this Bill, the Government are overseeing a huge change to the rental market. Can the Minister please set out the impact on long-term housing pressures as a result of this ban? In markets with soaring demand and low capacity, is it not the case that short-term tenancies can alleviate some of the pressures that tenants face?

The Government have been consistent in highlighting the perceived drawbacks of short-term tenancies. Of course, as with any housing arrangement, there will inevitably be aspects that are less than desirable, depending on one’s individual circumstances. However, in identifying these challenges, it is only right that the Government also acknowledge and weigh the very real, tangible benefits that short-term tenancies offer to many others. As other noble Lords have mentioned, such tenancies expand the availability of housing which might otherwise remain empty. The decision to impose an outright ban is, in effect, the most extreme course of action—the so-called nuclear option. From these Benches, we cannot help but wonder whether sufficient consideration was given to alternative, more balanced solutions that might have addressed the concerns identified while preserving the flexibility and choice that short-term tenancies provide for so many.

I hope the Minister will carefully reflect on these benefits and acknowledge the convenience of shorthold tenancies, as well as the key role they play in enabling economic mobility and the use of homes which might otherwise remain empty.